Estate of John L. Baird, Deceased, Ellen B. Kirkland and J. Samuel Baird, Co-Executors - Page 12

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          that any tax liability would have been larger due to the interest           
          factor.  In that regard, we reiterate that it was the huge spread           
          between the parties’ positions that may have protracted the                 
          litigation and exacerbated the amount of the claimed fees and               
          costs.  The Court is unable to reach the conclusion that the                
          number of hours billed was unreasonable.  There is no per se rule           
          that would limit the amount of fees claimed to the amount in                
          controversy.  Certainly, as a matter of good judgment and                   
          practical economics, a litigant would ordinarily be reluctant to            
          spend more for attorney’s fees and costs than is at stake.  In              
          that regard, however, the estates argue that it was respondent’s            
          approach to these cases and his unreasonable position that there            
          should be a nominal discount that protracted the proceedings and,           
          to some extent, pushed the fees closer to the amounts in dispute.           
          It is that very principle, the estates contend, that was the                
          basis and intent for the enactment of section 7430; i.e., to                
          reimburse a litigant’s fees and costs incurred in defending                 
          against an unreasonable position.                                           
               Accordingly, with the exception of the need to reduce                  
          claimed attorney’s fees to the statutory adjusted rate, we hold             
          that the estates’ claims for fees and costs are reasonable.                 

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Last modified: May 25, 2011